Counseling ▪ Training ▪ Market Research Business Plan vs. Strategic Planning Michigan Small Business & Technology Development CenterTM Copyright © 2008 MI-SBTDCTM. All rights reserved. www.misbtdc.org Objectives • Overview of MI-SBTDC services • Differences between Business Plan & Strategic Plan • Introduce the process of writing a business plan • Introduce major components of the plan • Discuss effective strategic planning • Identify additional resources Copyright © 2008 MI-SBTDCTM. All rights reserved. www.misbtdc.org www.misbtdc.org/region7 Michigan SBTDC Services Counseling - One-on-one meetings with experienced business consultants to assist starting or growing small businesses Training - Available through the Entrepreneurial Series: ▪ Starting a Business ▪ Writing a Business Plan ▪ Marketing Your Business ▪ Finance ▪ Business Legal Issues Research - Provide a full range of information services through the State Headquarters Copyright © 2008 MI-SBTDCTM. All rights reserved. www.misbtdc.org The Michigan SBTDC TM The MI-SBTDC™ is funded through a cooperative agreement with the U.S. Small Business Administration, the Michigan Economic Development CorporationSM (MEDC) and matching funds from Local Network partners in each region. TM MI-SBTDC State Headquarters Grand Valley State University Seidman College of Business Phone: 616.331.7480 www.misbtdc.org Copyright © 2008 MI-SBTDCTM. All rights reserved. www.misbtdc.org Business Plan & Strategic Plan Differences Business Plan • Prepare for a specific product or service • Identify specific customers for the product or service • Used internally and externally Strategic Plan • Engage entire management team/company • Clarify overall purpose/mission of the company • Determine priorities to achieve • Primarily used internally Copyright © 2008 MI-SBTDCTM. All rights reserved. www.misbtdc.org Business Plan Purpose • Organize new business venture (could be within an existing business) • Prepare for a business loan • Share with vendors • Small business with no management team – reassessing the business due to market shifts • Change the business model • Organize and structure all facets Copyright © 2008 MI-SBTDCTM. All rights reserved. www.misbtdc.org The Business Plan – Key Components • Executive Summary • Business Description • Market Analysis • Marketing and Sales • Management • Operations • Finance Copyright © 2008 MI-SBTDCTM. All rights reserved. www.misbtdc.org Executive Summary • Summarizes the main components of the overall plan • Write this section last • May be a stand-alone document Copyright © 2008 MI-SBTDCTM. All rights reserved. www.misbtdc.org Business Description • • • • • • Company name, history, legal structure Products or services offered Target customer Areas of expertise Owner’s experience Mission/vision for your company Copyright © 2008 MI-SBTDCTM. All rights reserved. www.misbtdc.org Market Analysis • Complete Market Research • Describe the industry • Size, growth, customer needs • Important trends • Competition • Prospective customers • Define Target market(s) • Size, growth, location Copyright © 2008 MI-SBTDCTM. All rights reserved. www.misbtdc.org Competition • Identify direct and indirect competitors • Analyze the competition’s • Strengths • Weaknesses Copyright © 2008 MI-SBTDCTM. All rights reserved. www.misbtdc.org Marketing - Sales • Create marketing plan • Identify sales goals • Describe ideal sales team • Describe the selling process • Face to face selling • E-commerce • Retail floor • Customer service after the sale Copyright © 2008 MI-SBTDCTM. All rights reserved. www.misbtdc.org Management • Set goals, strategies • Identify staffing responsibilities and needs • Staff: Full-time, part-time, contract • Outside advisors, resources • Create organizational chart Copyright © 2008 MI-SBTDCTM. All rights reserved. www.misbtdc.org Finance – Getting Started Estimate start-up costs • Facilities, space, improvements • Fixtures, equipment, inventory • Legal, marketing, professional fees • Computer hardware, software • Utilities, phones, insurance • Vehicles Copyright © 2008 MI-SBTDCTM. All rights reserved. www.misbtdc.org Finance - Operations Estimate monthly expenses • Staff: wages, benefits, training • Promotions, advertising • Inventory, raw materials • Rent, utilities, insurance • Travel, delivery, supplies • Taxes • Loan repayment, interest Create financial projections & scenarios Copyright © 2008 MI-SBTDCTM. All rights reserved. www.misbtdc.org Strategic Planning Benefits • Determine areas to focus resources • Develop consensus with management team • Gain a sense of security with employees – they know where the company is going • Set reasonable and attainable objectives • Establish metrics for the company • Gain control and fix operational problems Copyright © 2008 MI-SBTDCTM. All rights reserved. www.misbtdc.org Strategic Planning Key Components • Mission and Vision • Strengths -Weaknesses-Opportunities-Threats • Objectives -Where does the company want to be in 3 years? • Identify & prioritize initiatives or opportunities • Establish metrics and implementation plan (Who • Does What – When…) • Monitor progress and hold individuals accountable for implementation Copyright © 2008 MI-SBTDCTM. All rights reserved. www.misbtdc.org Mission & Vision Mission Statement • Define your core business • Identify who are your best customers • Clarify primary benefit you provide customers Vision Statement • Long term view • What you want to be recognized for • Source of inspiration Copyright © 2008 MI-SBTDCTM. All rights reserved. www.misbtdc.org Strengths-Weaknesses-OpportunitiesThreats SWOT Strengths • Identify internal business areas providing an advantage for the organization Weaknesses • Determine internal business areas which are a weakness compared to others Opportunities • External areas providing increased sales or profits Threats • External areas providing potential trouble Copyright © 2008 MI-SBTDCTM. All rights reserved. www.misbtdc.org Objectives/Goals • Determine desired end state – should be measurable • Cover four basic areas of organization: Employee Development, Internal Processes, Customers, and Finance • Easily translated into action plans for determined prioritized initiatives Copyright © 2008 MI-SBTDCTM. All rights reserved. www.misbtdc.org Implementation Plan and Metrics • Determine metrics for each objective/goal • Develop “actioning” plan for “Who Does What-When…” • Identify areas of quick success for a jumpstart • Monitor and hold accountable on a monthly basis • Share plan summary and accomplishments with the appropriate staff Copyright © 2008 MI-SBTDCTM. All rights reserved. www.misbtdc.org Monitoring Progress • Share plan summary with appropriate company staff • Monitor progress and update monthly • Hold team members accountable for completing tasks within the timeframe • Adjust plan as needed • Celebrate success! Copyright © 2008 MI-SBTDCTM. All rights reserved. www.misbtdc.org Small Business Plan Resources Additional Resources • http://misbtdc.org/small-business-team/ Business Plan Outline and Sample Business Plans • www.sba.gov Business Plan Outline and Sample Business Plans • http://www.michigan.gov/business Michigan Business One-Stop-Shop (online service for new entities) Copyright © 2008 MI-SBTDCTM. All rights reserved. www.misbtdc.org Business Plan Vs. Strategic Planning Questions And Answers Copyright © 2008 MI-SBTDCTM. All rights reserved. www.misbtdc.org Contact Information Nancy Boese Business Specialist T: 616-331-7373 [email protected] Tamara Davis Regional Director T: 269-387-6062 [email protected] Copyright © 2008 MI-SBTDCTM. All rights reserved. www.misbtdc.org